UPDATE: Swiss Regulators Halt Start Of Transocean $1B Dividend

[maddezmom]

Source: WSJ

Transocean Ltd. (RIG, RIGN.VX) said a Swiss commercial-registry office has denied its effort to proceed with the first of four portions of its planned $1 billion of dividend payments, citing legal exposure to the sinking of its Deepwater Horizon rig.

The Commercial Register of the Canton of Zug, a small territory in northern Switzerland known for its low tax rate, rejected the rig operator's registration because of numerous lawsuits involving the late-April burning and sinking of the BP PLC (BP, BP.LN)-leased rig, which unleashed the biggest U.S. offshore oil spill. Transocean moved its headquarters to Zug from the Cayman Islands in 2008.

The dividend plan of the world's largest offshore drilling contractor has drawn sharp criticism from some U.S. lawmakers, who are worried the payments to shareholders could enhance the company's protection from lawsuits and make it harder for those affected by the massive oil spill to seek claims against the company. In late June, about two dozen senators asked Transocean to postpone making a payout until the extent of the company's liability in the accident had been evaluated. Transocean has maintained that the payment will not affect its legal obligations related to the accident.

The company said in a press release that it disagreed with the Swiss office's view and believed it has completed all prerequisites for the dividend effort. A spokesman said the company plans to appeal, but he wasn't able to elaborate on the timing or any plans for further company actions.


Read more: http://online.wsj.com/article/BT-CO-20100813-713339.html

[Ghost Dog]

1. Well done the Canton of Zug. n/t

[glitch]

3. +

∞

[dipsydoodle]

2. Amazing

:thumbsup:

[ProgressiveProfessor]

4. Indeed it is surprising

However, its not clear if it will hold. There are other ways to disperse the cash to protect it from suit.

[cliffordu]

5. BWAAAHA ahahhahA HAHAHA

Well played!!!